Liu Yutong: "Chen Mo, for the first step of leveraging to build positions, just follow my instructions, no problem, right?"
Chen Mo replied, "No problem. When the time comes, I'll use the ghost entry method, breaking large orders into a multitude of micro-orders. They'll be executed during the periods of highest liquidity, mixed in with other trades to avoid leaving any obvious short-selling traces."
"Good!"
Liu Yutong continued, "Then, use 75% of the capital as the main force. Additionally, mobilize about 15% of the funds, roughly 100 million USD, to simultaneously short several of the highest-weighted and most fundamentally fragile tech component stocks in the Nasdaq 100 index, like Fruit and Goole..."
"The liquidity of these individual stocks is relatively worse compared to index futures, making them more susceptible to triggering panic through concentrated selling. They're perfect for indirectly suppressing the index in coordination with our main force. Keep the leverage for these positions controlled between 10 to 20 times."
"As for the remaining 15% of the capital, use it to purchase out-of-the-money Nasdaq index put options with expiries of 1 to 2 months. This is the highest-risk portion, but also the one with the greatest potential return. The option positions need to be spread across different exchanges and brokers..."
Liu Yutong paused here, emphasizing a key point.
"I know you're accustomed to setting stop-loss lines, but this time, there's no need to deliberately set them. As long as the index doesn't suddenly skyrocket, we can accept even a 50% loss at the initial stage.
You must stay calm and not hastily cut losses and exit. If anyone gets scared by the potential losses, cuts their position, and causes us to miss the chance to make big money, don't blame me for being unforgiving!"
As Chen Mo took rapid notes, he was utterly shocked inside.
This is really too crazy!
Even crazier than a gambler!
This is practically going all-in!
"Finally, intelligence."
"You need to form an independent monitoring team. This team has only one task: to monitor the credit default swap spreads, commercial paper rates, and any potential signals of liquidity drying up for institutions like Lehman, Bear, and Washington Mutual around the clock.
Especially over there across the ocean, every Friday afternoon is the time when such institutions are most prone to funding chain issues.
The moment any signs of collapse are detected in any one of them, immediately deploy the main force and increase the short positions at any cost!"
Although Liu Yutong knew roughly when Lehman would implode and go bankrupt, information discrepancies could exist. So, for the sake of prudence, she had them form this monitoring team.
This way, combined with the information she possessed, there shouldn't be any problems.
Chen Mo responded, "Yes! Miss Liu!"
".........."
As Liu Yutong continuously assigned related tasks and elaborated on her almost insane short-selling plan, expressions of astonishment appeared on everyone's faces.
Could a nineteen-year-old girl really have conceived this plan?
Regardless of the outcome, just listening to this plan, there were no flaws. It was extremely thorough, perfect, and one could also say "bloodthirsty"!
It felt like a predatory plan one would only hear in the core strategy meetings of a top-tier Wall Street hedge fund.
"That's about everything. Chen Mo, arrange for everyone to perform their respective duties."
"Yes! Miss Liu!"
Chen Mo abruptly turned to face his team and ordered, "All personnel, initiate according to Miss Liu's plan!"
“Capital team, begin executing the fund distribution step by step!”
"Trading team, log into all sub-accounts, check connections!"
"Algorithm team......."
"Intelligence team....."
By the time Liu Yutong finished arranging all the plans and work, an hour and a half had passed, and it was almost 4 a.m.
This reminded her of a famous quote from a notable figure in her previous life: "Have you ever seen Da Nan City at 4 a.m.?"
Walking out of the operations center set up on the top floor of the club.
Liu Yutong directly said to Gu Yebai and the others, "During this period, until the operation concludes, no one is allowed to use personal phones for any non-essential contact with the outside world. You must monitor this closely."
Gu Yebai and the others nodded: "Yesterday, after everything was arranged, I already had their phones confiscated and stored."
After all, with a business involving such a large sum of money, who wouldn't be cautious.
If nothing else, if the plans Liu Yutong arranged tonight were leaked and something went wrong, the losses would be enormous.
This was also why they chose the Cloud Peak Club as the location. Besides facilitating supervision, it allowed these traders to live comfortably. After all, they would be isolated from the world during this period, and due to the time difference, they would basically have to work overnight, which was quite taxing.
Under these circumstances, they had to be provided with a good environment, right?
Here, there were top-tier guest rooms, 24-hour on-call Chinese and Western chefs, even a gym and a cinema, etc., ensuring these traders could get the best relaxation and rest under high-pressure work, avoiding operational errors caused by long-term staying up late.
Only after finishing these trivial matters did Liu Yutong feel a wave of fatigue hit her.
Continuous high-intensity thinking and strategizing, even though she was young, now just made her head feel heavy.
She then went to the guest room arranged for her by Zhou Muchen and the others, ready to have a good sleep.
As she reached the door, she instructed Yun Cheng: "I'm going to rest. Pay more attention to the material collection matter tomorrow."
"Yes, Young Miss." Yun Cheng nodded and then turned to leave.
...............
On a street near the Drum Tower in Da Nan City.
Over thirty thugs with green hair were lying haphazardly at the entrance of a long-closed arcade.
The most incredible part was that each of their foreheads had a vertical "Heavenly Eye" painted on it with greasepaint.
Only, at this moment, for most of them, only the Heavenly Eye on their foreheads was still open; their actual eyes were hazily closed.
From exhaustion!
The green-haired leader took out his knock-off phone for the Nth time to check the time, growing increasingly impatient.
"Damn it, is that bastard Pao Ge coming or not? I've been waiting for almost five hours now!"
"Boss, do you think Pao Ge and his crew got scared? Don't dare to fight our Heavenly Eye Gang for this arcade turf?"
"You think that's possible?"
The green-haired boss said irritably, "All I can sense right now is that that grandson Pao Ge stood us up! And, how many times have I told you, we're the Heavenly Eye Gang, not some Green Forest Gang!"
"Yes, yes, Heavenly Eye Gang, Heavenly Eye Gang..."
The green-haired leader was none other than Brother Heavenly Eye, Liu Hao. After returning from his studies in Mingzhu City, he immediately gave his little brothers a makeover.
All members traveled in green: not only was their hair green, but their clothes were also green, and they even all got a Heavenly Eye.
Of course, most were painted on, to save money.
After the uniform dress code was implemented, he originally thought he was about to step by step ascend to the peak of life.
Unexpectedly, he ended up provoking a fierce adversary.
That was Pao Ge.
Paoge was at the arcade playing video games with a few of his lackeys when he saw Liu Hao, one of the guys watching the place. Something about Liu Hao's style of dress seemed to trigger a bad memory for Paoge, and he just started beating Liu Hao up on the spot.
Naturally, Liu Hao wasn't about to let that slide. Using his advantage of having more men on hand at the time, he and his crew turned the tables and beat up Paoge and the few followers he'd brought with him.
Later, Paoge left a fierce threat, saying he'd bring his people that very night to settle the score.
Liu Hao treated it as a major threat, calling in all his brothers and preparing for a full-blown confrontation.
And then... they all went down.
From exhaustion, that is.
Because the other side never actually showed up.
Finally, just as Liu Hao was about to drop from tiredness, he got the news.
Paoge had brought over a hundred men, and all of them had been soundly beaten by someone else!
